An interest free credit card is a credit card that charges no interest for a fixed period, usually between 6 to 24 months, after which interest is charged at the standard rate of the credit card. The phrase Interest-free credit card is often mistakenly used to refer to a 0% balance transfer credit card but these two types of cards are different. The name “Interest free credit card” is a bit misleading since these cards are only interest-free for a fixed period and some of these cards may charge an annual fee. Like normal credit cards though, interest free credit cards can also come with other perks and rewards worth taking into account when considering an interest free credit card.
Want an Interest free card?
No interest credit cards are not very common in New Zealand, and as such, we often get asked about these cards. If you are after a Zero interest credit card you can visit our interest free credit cards page for a list of these credit cards in New Zealand.
Who would benefit from an interest free credit card?
If you are short on cash, but want to buy something urgently and you are confident that you can pay back the debt within the interest-free period then a zero interest credit card might be right for you, but interest free credit cards are not for everyone. If you don’t think you would be able to pay back the credit card debt, or at least a significant portion of it, before the interest free period lapses, then a zero interest card might not be right for you and you might be better off with a low rate credit card instead.
What other options are there?
Some people looking for a zero interest credit card might actually be looking for a 0% balance transfer card instead. Zero percent balance transfer credit cards allow you to transfer your existing credit card debt to them and pay zero interest for a fixed period of usually between 6 to 12 months. After this grace period lapses, interest is charged at the standard rate. It is worth taking into account the standard interest rate of the balance transfer card and the annual fee charged when considering a balance transfer credit card.
What else do I need to know about Interest free credit cards?
Most credit cards including interest free credit cards require you to make minimum repayments each billing cycle. Failure to make these payments could result in penalty fees charged to your credit card. This is something most new credit card users are unaware of.
Where can I get an interest free credit card?
You can visit our interest free credit card page to see all the interest credit cards in NZ that we have found. As of this writing, only the American Express Airpoints Card has an interest free offer in NZ which has made it hugely popular. The American Express Airpoints Card also has no annual fee and you can Earn 1 Air New Zealand Airpoints DollarTM for every $100 you spend with the American Express Airpoints Card.
We will continue to monitor the market and update our website with new interest free credit card offers as they become available.
Considering getting a credit card?
The best credit card for you would depend on your personal circumstance and how you intend to use your credit card. We have put together a list of some of the best credit cards in New Zealand to help you find the best credit card in NZ to suit your individual needs. Alternatively, you can narrow down your search by credit card type such as interest free credit card, low rate credit card, balance transfer, credit card reward or air nz credit card